New supply management law won’t save the system from Trump, experts say

A new law recently passed in Canada to protect the country’s supply management system may not be enough to shield it in trade negotiations with the Trump administration, experts say. The law, known as Bill C-202, restricts the government from making commitments in trade talks that would increase tariff rate quotas or reduce tariffs for imports above a certain threshold.

Trade lawyer William Pellerin believes that this law puts Canada in a difficult position when negotiating with the United States, especially in light of President Trump’s focus on Canada’s supply management system. Trump has criticized Canada for imposing high tariffs on U.S. dairy products, calling it a major trade irritant.

While the passing of Bill C-202 was celebrated by Quebec farmers as a victory, experts warn that it may limit Canada’s ability to negotiate effectively with the U.S. Pellerin suggests that Prime Minister Mark Carney could potentially bypass the restrictions of the law by personally leading trade talks or by expanding access to dairy quotas beyond processors.

Carleton University professor Philippe Lagassé explains that the law does not completely restrict the government’s ability to negotiate trade deals, as it falls under the royal prerogative. This means that the government could potentially override the law through Parliament if necessary.

Despite the challenges posed by the new law, trade lawyer Mark Warner believes that Canada could still make concessions in trade talks if needed. He emphasizes that the government ultimately has the power to remove the restrictions imposed by Bill C-202 through Parliament.

While the idea of dismantling Canada’s supply management system has been a contentious issue in trade negotiations, experts believe that compromises could be made to address concerns raised by the U.S. Former Canadian diplomat Louise Blais suggests that finding a middle ground that aligns with the spirit of trade agreements could help resolve the ongoing trade disputes.

In conclusion, while the new law may pose challenges for Canada in trade negotiations, there are still opportunities for the government to navigate through these issues and find solutions that benefit both countries. It remains to be seen how Canada will address the concerns raised by the U.S. and protect its supply management system in future trade talks.